Annual house price growth has slowed to its weakest level since March 2024.
Today’s figures from mortgage lender Halifax also showed a north-south divide, with London prices down 1%.
The main focus of today’s session is a measure of US inflation, which may help determine if the Federal Reserve cuts interest rates next week.
FTSE 100 Live Friday
- House price growth slows
- Ocado compensation boost
- Halma strikes £230m deal
Market update: FTSE 100 higher, Rolls-Royce upgrade lifts shares
10:14 , Graeme EvansThe FTSE 100 index today rounded off a lacklustre week in positive territory after heavyweight stocks AstraZeneca and Rolls-Royce rose by about 1%.
The engine maker’s advance of 14.5p to 1105.5p came as Bank of America lifted its price target to 1615p, from 1440p previously.
London’s top flight put on 21.59 points to 9732.46, with miners Anglo American and Antofagasta among the other stocks providing support.
The overall mood was one of caution, reflecting the build up to next Wednesday’s potential US interest rate cut.
The release of today’s core personal consumption expenditure price index, which is the Federal Reserve’s preferred inflation measure, added to the jitters.
Other risers in the FTSE 100 included Halma after the safety technology conglomerate announced one of its biggest ever acquisitions.
The deal worth £230 million is for London-based E2S, a specialist in high performance notification, initiation and detection devices primarily used in highly hazardous environments.
The shares rose 52p to keep Halma in record territory at 3670p.
On the fallers board, BP shares weakened 2% or 8.85p to 456.1p and Shell dropped 32p to 2767.5p.
In the FTSE 250 index, Ocado rallied 6% or 10.5p to 194.75p after it said it will receive compensation of $350 million (£262 million) from US retail partner Kroger.
The disclosure follows Kroger’s decision last month to shut three warehouses and scrap plans for a site in Charlotte, North Carolina, which was one of two due to launch in 2026.
Big Yellow shares fall as takeover interest ends
09:53 , Graeme EvansShares in FTSE 250-listed Big Yellow have dropped 6% or 58p to 1012p as investors react to the end of takeover talks with investment group Blackstone.
Big Yellow said on Thursday evening that there was “no basis for continuing discussions with Blackstone” after evaluating a possible offer in the context of its “strong performance, strategy and business model”.
Blackstone announced on 13 October that it was considering a potential offer for the self-storage company, which has a current market value of £2.1 billion.
Halma seals £230m acquisition, shares up 1.5%
09:45 , Graeme EvansHalma shares today extended their run at a record high after the group of safety technology companies announced an acquisition worth £230 million.
It is buying London-based E2S, a specialist in high performance notification, initiation and detection devices primarily used in highly hazardous environments.
The acquisition supports Halma’s expansion into fire detection and alarm systems.
The FTSE 100-listed shares rose 1.5% or 52p to 3669.8p, having risen by 35% this year.
FTSE 100 opens higher, BP shares down 3%
08:27 , Graeme EvansA strong session for the mining sector today helped the FTSE 100 index to rise 18.44 points to 9729.31.
Anglo American rose 2% or 73p to 3023p and Glencore put on 7.1p at 389.95p.
AstraZeneca, which is London’s most valuable company, also helped the FTSE 100 performance as its shares rose 118p to 13,632p.
Other risers included Rolls-Royce following an advance of 18p to 1109p, while Burberry lifted 10p to 1223p.
BP posted the worst performance following a decline of 12.8p to 452.2p, a 3% reverse that compared with a 1% or 19.5p fall to 2780p for Shell.
Ocado shares jump on Kroger compensation sum
08:19 , Graeme EvansOcado is to receive compensation of $350 million (£262 million) after US retail partner Kroger decided to scale back its robotic warehouse plans.
Kroger decided last month to shut three warehouses and scrap plans for a site in Charlotte, North Carolina, which was one of two due to launch in 2026.
Ocado shares jumped 11% or 19.75p to 202p as the payment is more than the $250 million (£190 million) the company had originally said it expected to receive.
The FTSE 250-listed group will continue to operate five sites for Kroger in Monroe, Dallas, Atlanta, Denver and Detroit. The move will hit Ocado’s fee revenues by about $50 million (£38 million) in this year’s financial results.
Nikkei 225 down 1% as rate rise speculation builds
08:01 , Graeme EvansThe Nikkei 225 today closed more than 1% lower after the yen rose against dollar on expectations the Bank of Japan will hike interest rates later this month.
Japanese rates were in negative territory from 2016 to 2024, with three increases since February 2024 only enough to take the base rate to 0.5%.
If the speculation concerning a December hike is correct, an increase to 0.75% would take the policy rate to its highest level since 1995.
Emma Wall, Hargreaves Lansdown chief investment strategist, said: “Borrowing cheaply in yen to invest elsewhere in global markets, often US dollars – known as the yen carry trade – has been a popular arbitrage strategy for decades.
“Higher rates and a higher yen mean this will no longer be as profitable a strategy and could impact global investor demand.”
Inflation figure set to test US rate cut hopes
07:40 , Graeme EvansExpectations that the Federal Reserve will cut interest rates next week will be tested later today with the release of a key figure on inflation.
The core personal consumption expenditure price index is the Fed’s preferred inflation measure.
The report for September, which has been delayed due to the government shutdown, is set to show a figure similar or slightly below August’s 2.9% annual growth.
Wall Street is pricing another quarter point rate cut when the Federal Reserve’s policy meeting concludes on Wednesday.
That’s despite a delay to November’s jobs report, which is due to be published on 16 December rather than today as originally planned.
House price growth weakest since March 2024, London down 1%
07:16 , Graeme EvansMortgage lender Halifax today said annual house price growth slowed to 0.7% in November, the weakest level since March 2024.
The fall from October’s 1.9% follows strong growth a year ago, with prices up by £139 month-on-month to a new record average of £299,892 in November.
Halifax added that regional data continues to show a clear North/South divide, with London prices down by 1% and the North West up 3.2% on a year earlier.
Amanda Bryden, Halifax head of mortgages, said it had been one of the most stable years for the housing market over the last decade.
She added: “Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.”
FTSE 100 set for steady start, Nikkei 225 down 1%
07:00 , Graeme EvansUS markets faded last night to leave the S&P 500 index 0.1% higher by the closing bell.
The Nasdaq Composite rose 0.2%, while the Dow Jones Industrial Average finished slightly lower.
Japan’s Nikkei 225 fell 1%, reflecting a stronger yen on expectations that the Bank of Japan will hike interest rates later this month.
The benchmarks in Shanghai and Hong Kong rose by about 0.5%.
The FTSE 100 index is forecast to open broadly unchanged, having yesterday broken a three-day losing streak with a rise of 0.2% to 9710.87.
Brent Crude is flat at $63.24 a barrel and gold slightly higher at $4226 an ounce. Cryptocurrency Bitcoin is trading at $92,060.
